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If repairs can be made just to the problem areas, that's all you should expect them to offer in terms on money to pay for repairs. If that's not acceptable to you, your only option will be to sue the company for the damage and demand a complete replacement of the flooring.
An insurance company is always going to want to settle as cheaply as possible, so I would recommend that you have a flooring contractor give you an estimate of what it would cost to sand and re-stain the areas so you'll know what cost you're looking at.